“George Osborne must do more to tackle the factors holding back the UK’s economy – he should deregulate business and cut taxes, even if this means that government spending needs to be reduced further.

“The economy is faltering because the government is not doing enough to ensure that the UK is a good place to do business. Eliminating the deficit is important but, unless it is combined with other measures, such as tax cuts and deregulation, our economy will continue to grow slowly.

“If the Chancellor wants growth he should overhaul employment regulation, regionalise the minimum wage and create exemptions for small businesses from regulation. He should move urgently to liberalise the planning system and insist on proper deregulation across all government departments.”

The IEA recently released a detailed report setting out proposals for reform that would increase economic growth – Sharper Axes, Lower Taxes[3].

The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.

The IEA is a registered educational charity and independent of all political parties